In India, Bangalore continues to be a start-up hotspot. The city has shot up four places in the latest Global Startup Ecosystem Ranking by San Francisco-based Compass, a research firm that provides global benchmarking tools.
The world’s 2nd fastest growing start-up ecosystem, has the youngest entrepreneurs, says study. Their current rankings have new entrants, cities climbing the rungs of success while those that slipped.
Bangalore ranks 15 and is the only Asian city apart from Singapore to figure in the top 20. The city scores big time on exit valuations. Bangalore witnessed five times more exit value last year than it did in 2012. Across twenty startup cities, the average value was up 78 percent, so Bangalore outstripped them handily. But Berlin did even better, thanks to the IPOs of Rocket Internet and Zalando: exit value grew by a factor of as much as 20. That is by far the highest of all cities surveyed.
A nice mix of four ingredients rolled in to one — Bangalore’s IT services pedigree, diverse talent, linkages with the Silicon Valley and entrepreneurial culture — makes the city the hottest start-up neighbourhood in the country. A good number of angels (early funders), venture capitalists and private equity players favoured Bangalore over most cities, with a 4x rise in the amount of funding, which is an indicator of participating in the city’s promising startup act.
Berlin, with a robust ecosystem, saw the highest rise in venture dollars at 12x. Bangalore did better than cities such as Boston (3.7x rise), Amsterdam and Seattle (both 2x). Overall, across top 20 cities, venture funding rose by a whopping 95 percent between 2013 and 2014.
The high exit values and sharp growth in venture funding catapulted Bangalore to rank second only to Berlin in the Global Startup Ecosystem Growth Index. When compared with Silicon Valley’s average age of entrepreneurs at 36.2 years, Bangalore has the youngest entrepreneurs, with an average age of 28.5 years.
Top six locations in India account for 90 per cent of the start-up activity. These include Bangalore (28 per cent), Delhi-NCR (24 per cent), Mumbai (15 per cent), Hyderabad (8 per cent), Pune (6 per cent) and Chennai (6 per cent). Calcutta, Ahmedabad, Cochin, Jaipur and Trivandrum figure among the next emerging locations.